Amazon AWS EC2I'm not sure why this is the recommended way to run a masternode, but I can tell you I have enough for 1 MN and I was planning to run one (on the day we had so much problems which stopped my plan).
I never considered Amazon EC2 as an option because of security.I have an Amazon EC2 server right now. I'm connected to it. It's my OpenVPN server and also my PPTP server (for tablets/cell phones). I've had at least 1 EC2 instance for over a year so it hasn't been free for me for many months now. I still pay. I like my server. Nothing on it that's worth anything if a hacker hacks it.
So why I never considered an EC2 as a masternode? It's because the EC2 has 2 IP addresses. One on the internet (which everyone in the world can see). This IP address is quite secure (oddly enough) per your Security Group definition.
The private IP is the problem. It will look something like this 10.2xx-1xx-61. I was able to ssh to the private IP from one EC2 to another (using certificate, of course, don't consider username/password). So other ports are also open. Even if they are not open on the Security Group/Internet IP.
This is now a matter of securing your EC2 applications/OS/network-FW.
One of the EC2's I was running in the past was an Asterisk VoIP server. Fail2Ban was full of attempted attacks from China, Brazil, etc. Why was it odd? Well my Security Group was defined to only accept connections from Tmobile network and other networks I defined. My Internet IP was not reachable outside of those networks. But the "private" IP shared with everyone on the Amazon cloud (i.e. Netflix, maybe I should hack them, lol) was accessible to these hackers. Think of your home network shared with thousands and thousands of unknown's. Sure, your Windows XP box is secure with a firewall (lol), but against thousands of attackers, it will probably fall.
I would not run a Masternode on a VPS and definitely not on an Amazon EC2.
I have this as my stratum-server
http://goo.gl/cpFXg8 upgraded to 2GB. It's low power. No need for a hard drive. Install Linux on a USB 16GB (around $12). Plug in temporarily to monitor during setup. Afterwards; ssh with byobu-enabled (screens but better). What more you need? This behind my ddwrt router which I have full control, I can trust to run my Masternode with only port 9999 open. I don't think Masternode needs RPC.
Just my .02 DRK humble suggestion...